Master limited partnerships are one of the sweet spots for 2014, when taxes for everyone will be on the rise — even those making under $250,000. That’s right; no one is safe now from being taxed at a higher rate. I can only hope this special asset class (distributed income from MLPs is 80% to 90% free of federal income tax due to depreciation and depletion allowances) doesn’t become the target of some regulatory movement seeking to destroy the formation of capital for capital-intensive industries like constructing and operating oil and gas pipelines and mining for deep-deposit coal ore.
It’s the right asset class at the right time, and to get you started, I’ll give you my top MLP right now, along with three more that look like attractive candidates I might recommend for the Cash Machine portfolio in the future, and also a fund playing on MLPs: New Source Energy Partners, LP (NSLP) Yield: 10%, Capital Product Partners, LP (CPLP) Yield: 8.5%, Compressco Partners, LP (GSJK) Yield: 6.9%, Rentech Nitrogen Partners, LP (RNF) Yield: 9.3% and Kayne Anderson Energy Total Return (KYE) Yield: 7.2%.